According to TechRepublic, Turner & Townsend’s 2025-2026 Data Center Construction Cost Index reveals that 48% of industry experts now cite power availability as the main obstacle to meeting delivery schedules. The study of 52 global markets and 280 experts found that 83% believe supply chains aren’t equipped to deliver advanced cooling technologies needed for AI data centers. Global construction cost inflation for traditional data centers is projected at 5.5% in 2025, while AI-ready facilities in the U.S. carry a 7-10% cost premium. Tokyo leads as the world’s most expensive market at $15.2 per watt, followed by Singapore at $14.5 per watt and Zurich at $14.2 per watt.
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The Power Problem Is Real
Here’s the thing – we’re not just talking about minor delays. Power availability has become the single biggest challenge, and nearly half of the experts surveyed say it’s directly impacting their ability to deliver projects on time. Think about that for a second. We’re in the middle of an AI gold rush, and the limiting factor isn’t chips or talent – it’s literally electricity. These AI data centers are power-hungry monsters, and the grid just wasn’t built for this level of demand. Basically, we’re trying to run a Formula 1 car on regular unleaded gas.
Supply Chain Struggles
But wait, there’s more. The fact that 83% of experts think supply chains can’t handle advanced cooling tech is absolutely staggering. Liquid cooling systems aren’t some optional upgrade – they’re essential for keeping these AI beasts from melting themselves. And if the supply chain can’t deliver, what happens then? Do we just hit pause on the entire AI revolution? Paul Barry from Turner & Townsend isn’t mincing words either – he’s telling developers they need to embrace off-grid solutions and completely rethink their approach. This isn’t business as usual anymore.
Cost Reality Check
Now let’s talk money. That 7-10% premium for AI-ready facilities adds up fast when you’re talking about billion-dollar projects. And these costs aren’t distributed evenly – the full report shows Tokyo, Singapore, and Zurich leading the pack with costs that would make your eyes water. Silicon Valley at $13.3 per watt? London at $12? These numbers are insane, but they reflect the brutal reality of building infrastructure that can actually handle AI workloads. The days of cheap data center construction are over, and companies betting big on AI need to understand what they’re signing up for.
Adapt or Get Left Behind
So what’s the solution? The report makes it clear – innovation isn’t optional anymore. We need new procurement strategies, alternative energy designs, and frankly, a complete mindset shift. The industry has to move faster than it ever has before. But here’s my question: can we actually build fast enough to keep up with AI’s explosive growth? Or are we looking at a situation where the physical infrastructure becomes the bottleneck that slows everything down? One thing’s for sure – the companies that figure this out first are going to have a massive competitive advantage.
